The high cost of earthquake insurance
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3/7/2007
My wife and I live in an 1100 sq. ft condo in a gated community of 96 units. We bought in 1994 for $189K and our home has appreciated to at least $500K. That's the good news. The bad news is that our earthquake insurance is about to terminate, and the costs are going way up, and the coverage is going down. So if you are in the market for a new home: Beware of earthquake insurance rates. The insurance companies had to pay through the nose after a bunch of natural disasters in 2005. It seems like they are on a mission to either rebuild their reserve funds or just plain avoid costly payouts.
Darryl | Sunnyvale, CA